03 Feb 2026
Changes to Capital Allowances in 2026
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Changes to Capital Allowances in 2026CGT take falls by £2.5 billion
Only 369,000 taxpayers paid CGT in 2023, resulting in a £2.5bn drop in revenue to £14.4bn.
Only 369,000 taxpayers paid capital gains tax (CGT) in the last tax year, a decrease of 40,000 from the previous year. Despite the overall reduction, CGT from residential property sales rose to £1.6bn.
High-income individuals had a significant impact, with those earning £5 million or more contributing 41% of total CGT payments, despite representing just 1% of all CGT taxpayers. Furthermore, 44% of CGT was paid by people earning over £150,000.
London and the South East continued to dominate, providing 50% of the CGT payments, mirroring trends from previous years. The remaining regions in the UK had a more even distribution of CGT liability.
Age-wise, taxpayers aged 55 to 64 were the most significant contributors, generating £26.7bn in gains and paying £4.7bn in CGT. Notably, a thousand taxpayers aged 15 or younger collectively paid £5m in CGT.
While the total number of taxpayers and gains decreased, specific segments, such as high-income earners and certain age groups, contributed significantly to the CGT revenue.
If you’d like further information on CGT, click on our guide below.
If you’d like to discuss yours, or your businesses, taxes be sure to click on the link below and reach out to us to find out how we can help you be tax efficient.
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